The creator of this fort is unknown. In 1485 this place came under rule of Malik Ahmed who was the founder of Nijamshahi. When Shahaji Raje became the secretary of Nijamshahi, Adilshahi and Mughals of Delhi together tried to end Nijamshahi. In the year 1635-36, in difficult circumstances Shahaji Raje transferred himself with Jijabai and Shivaji to Mahuli. Khan Jaman, son of Mahabat Khan beleaguered this fort. Shahaji Raje asked for help to Portuguese. They refused and Shahaji Raje surrendered himself.

Shivaji took this fort from Mughals on 8 Jan 1658. In 1661 it was given back and was won again by Shivrai. In treaty of Purandar, in 1665, Marathas lost these forts again. The Moghal sardar Manohardas Gaud was the in charge of this fort. He did much construction on the fort. In Feb 1670, Shivaji Maharaj tried to conquer Mahuli, but failed. Thousand of Marathas were killed by Moghals. It was a bad blow to Marathas. Even after this victory, Manohardas Gaud, the chief of the fort gave up his position and a new chief Alveerdi Beg was appointed. On 16 June 1670, after two months, Moropant Pingle conquered the forts and Mahuli, Bhandargad and Palasgad became part of Swarajya.

Mahuli Fort At 2815 ft, this is a popular trekking destination and a paradise for rock-climbers because of many nearby pinnacles with interesting names like Vazir, Vishnu, etc, given by the local trekking and climbing fraternity. This mountain complex is actually a group of two or more hills with common cols and pinnacles.

It is the highest point in the Thane district. The forest surrounding Mahuli has been declared as a sanctuary. Once Shahaji Raje, father of Chatrapati Shivaji Maharaj, had this fortress under his belt.